2021 LH SUSTAINABILITY REPORT

Participant
Published
  • 09-Dec-2021
Time period
  • January 2020  –  December 2020
Format
  • Stand alone document – Basic COP Template
Differentiation Level
  • This COP qualifies for the Global Compact Active level
Self-assessment
  • Includes a CEO statement of continued support for the UN Global Compact and its ten principles
  • Description of actions or relevant policies related to Human Rights
  • Description of actions or relevant policies related to Labour
  • Description of actions or relevant policies related to Environment
  • Description of actions or relevant policies related to Anti-Corruption
  • Includes a measurement of outcomes
 
  • Statement of continued support by the Chief Executive Officer
  • Statement of the company's chief executive (CEO or equivalent) expressing continued support for the Global Compact and renewing the company's ongoing commitment to the initiative and its principles.

  • To our esteemed stakeholders,

    Through the provision of housing and housing welfare, and by promoting balanced regional development, we have opened the way for citizens to experience a better life and a brighter future. We are taking the lead in implementing key policies, such as the Third Phase New Town Development and housing supply projects in the capital region, and are striving to realize tangible results. Further, we are also working to generate social values such as job creation, shared growth, and contribution to local communities. Moving forward, to become a trusted partner for sustainable, shared growth with our stakeholders, we will actively promote ESG management through the following objectives.

    Firstly, we will strive to achieve sustainable, eco-friendly public development.
    Since the Paris Climate Accords in 2015, resolving the negative environmental impact of corporate activities has become a key issue for companies today. Within this context, LH is leading efforts to discover methods of housing construction and urban development that enable coexistence with our environment. To this end, we will increase the proportion of ESG bonds to 50% of our total bond issuance by 2024, whilst expanding our eco-friendly projects that respond to climate change – such as green re-modelling and zero-energy construction and urban development.

    Secondly, we will establish a housing safety net so that citizens may live stable and invigorating lives.
    LH was established to ensure that all citizens, without discrimination, may enjoy a pleasant living environment. This is the very reason for our
    existence. By increasing the supply of public housing, we will strive to ease housing concerns and enhance stability in the housing market, and
    contribute to the qualitative and quantitative expansion of housing through the provision of related care and medical services. Moreover, we will
    make every effort to strengthen the safety net for vulnerable social groups, such as by developing a system that addresses unemployment by
    providing job counseling and links to employment

    Thirdly, we will become a company wholly trusted by the public through our transparent and fair management.
    Real estate speculation by a number of LH employees has damaged public trust in our organization, and we are working to restore this trust as a matter of absolute priority. The LH Innovation Committee, consisting of external experts and internal members, endeavors to identify and diagnose the factors that enabled the speculation to take place, and works towards implementing 87 measures in this respect. We have also established a Compliance Supervisory Committee to significantly strengthen our monitoring of real estate transactions and illegal activities. In addition to this, we will work towards eradicating unethical behavior, such as abuse of power and privileges granted due to previous office, and establish a governance structure based on public engagement and communication. Through these efforts, LH shall become a company characterized by integrity, fairness, and transparency.

    We will use various channels to communicate with you, our stakeholders. The results of this communication will be actively reflected in our
    corporate activities, thus laying the foundation for sustainable growth. We ask for your continued interest and support so that we may successfully internalize and deepen our ESG management.

    Thank you.

Human Rights
  • Assessment, policy and goals
  • Description of the relevance of human rights for the company (i.e. human rights risk-assessment). Description of policies, public commitments and company goals on Human Rights.

  • Strengthening human rights protection and human rights violations relief procedures, and providing a citizen participation-type governance system

  • Implementation
  • Description of concrete actions to implement Human Rights policies, address Human Rights risks and respond to Human Rights violations.

  • 1. Strengthened basis for human rights management system
    2. Establishment of a human rights/ethics organization
    - Internal control, Strengthening
    - fairness and ethics
    - Innovation in personnel management, Restoration of public trust

  • Measurement of outcomes
  • Description of how the company monitors and evaluates performance.

  • Unification of Human Rights and Ethical Management Organizations

Labour
  • Assessment, policy and goals
  • Description of the relevance of labour rights for the company (i.e. labour rights-related risks and opportunities). Description of written policies, public commitments and company goals on labour rights.

  • Certified as Best Labor-Management Culture Enterprise

  • Implementation
  • Description of concrete actions taken by the company to implement labour policies, address labour risks and respond to labour violations.

  • Signed a labor-management agreement to improve the work environment

  • Measurement of outcomes
  • Description of how the company monitors and evaluates performance.

  • Increased fatigue due to prolonged quarantine measures
    Growing demands for proper treatment due to increased workload

Environment
  • Assessment, policy and goals
  • Description of the relevance of environmental protection for the company (i.e. environmental risks and opportunities). Description of policies, public commitments and company goals on environmental protection.

  • Green New Deal as a means of Responding to Environmental Changes

  • Implementation
  • Description of concrete actions to implement environmental policies, address environmental risks and respond to environmental incidents.

  • ‌E‌xpand fuel cell business to spread eco-friendly future energy
    ‌D‌evise a zero-energy model
    Systematize infrastructure to respond to heat waves and ultrafine dust, and expand the use of said infrastructure
    Develop technologies that will reduce ultra-fine dust

  • Measurement of outcomes
  • Description of how the company monitors and evaluates environmental performance.

  • Green remodeling 12,864 cases
    Energy independence rate Increased by 20%

Anti-Corruption
  • Assessment, policy and goals
  • Description of the relevance of anti-corruption for the company (i.e. anti-corruption risk-assessment). Description of policies, public commitments and company goals on anti-corruption.

  • Becoming a People-Oriented and Ethical Company that is Trusted and Loved by the Public

  • Implementation
  • Description of concrete actions to implement anti-corruption policies, address anti-corruption risks and respond to incidents.

  • Establish balanced ethical management system
    Create preventative ethical environment based on empathy
    Lead the practice of ethical values

  • Measurement of outcomes
  • Description of how the company monitors and evaluates anti-corruption performance.

  • Ethical Management Index
    '18: 77.8
    '19: 79.2
    '20: 81.4